Halloween

The café I went to this morning wasn’t hosting any Halloween event, but they were giving away candies to anyone who was in costume. The owner had Celtic’s jersey on top of his usual attire and was explaining to his customers that he was supposed to be a basket ball player. I saw a few adult customers from the nearby school dressed in various costumes.

In the afternoon I was in Fruitvale district in which lots of Hispanic businesses are located. Tomorrow, November 1st, is called "Dia de los muertos" (the day of dead) in Mexico when people honor those how have been passed. I saw some decorations with pictures, skeleton figures and marigold flowers. A girl at a Mexican bakery said her store had been really busy this week to make "pan de muerto" pastry eaten for the cerebration.

In the evening, my neighborhood was filled with children. Despite the rain, there seemed to be more kids than before, maybe because it was Friday this year.

I realize Halloween will be Saturday next year (and dia de los muertos on Sunday). What will I do at Snappy's?

Picture of Dia de los muertos altar. Crosses represent those who have been killed this year.
IMG_1687.jpg

Japanese version of this entry is here.

Another trip to the shoe repair shop.

At my last visit, the repair guy told me he likes coffee. So I intended to bring some beans I am evaluating for him to taste (i.e. nominating him to be my guinea pig.) Then I broke another pair, so I really had to go see him.

He again looked busy, took a glance at my shoes and fixed them right away. For a few minutes, until another customer came with a broken suitcase, we chatted about his business. He has been fixing shoes for 20 years. His business has been picking up recently as the economy has gone down. We agreed that people are fixing what they have instead of purchasing new ones.

He said he is lucky if he gets a lunch break. I guess I have to bring him some snack next time!

Japanese version of this entry is here.

Bank shopping

Just have started shopping for a bank. I could use the same bank as my personal one for Snappy's, but I could not see the benefit (or no drawback either.) My personal bank is very big and would probably not care if I open another account with them or not. Plus, someone I know had a trouble with them, and I was not particularly interested in giving additional business..

The one I visited today actually rejected my Small Business Association loan application in the past. But the representative was very helpful on my application, and they seemed to care what would be the best for the client.

So I contacted the rep, Alice, again. She was excited to hear that my project is moving along and explained different services for small businesses.

Japanese version of this entry is here.

August, 2008

(Continued from March 2008 Part 2)

The office space of my interest back in February of 2006 became vacant again. As soon as I saw the “For Rent” sign, I called Wayne. He said he was expecting my call and said “Go ahead and see inside. The back door is open. Be careful that inside is quite different from how it was before, and call me again if you are still interested.”

So I headed to the building and stepped inside through the back door. Yes, it was very different inside. It seemed that the previous tenant wanted to use the entire building for commercial or industrial purposes and had started construction. There were piles of wall and ceiling material on the floor. Yet I was still motivated to open a café where once an office used to be at and called Wayne right away. He mentioned the approximate rent he was considering and then told me to come up with a lease proposal.

Fortunately I found a sample of proposal to lease on the Internet and started writing mine right away. It basically listed what I could keep (after moving out) would be of my responsibility, and what he could keep would be of his.

Of course it was important for me to reduce my cost, but I also wanted to create a win-win situation between us. I wouldn’t have been there should he have not cared to tell me how naïve I was back in 2006.

Japanese version of this entry is here.

March, 2007 (Part 2)

(Continued from Part 1.)

Wayne emailed me back later:

Sky, the first space you contacted me for is still open. It is too large for your operation, but we maybe able to rent you half of it.

He offered half of the space I saw his “for lease” sign about a year earlier. It was facing to the back parking lot, so that he can rent the other half facing to the main street to someone else.

I rushed to banks to apply for small business loan just to be declined by all but one. The one offered me a rate of prime plus 10%. Main reasons for rejection were:
1. I did not have any business experience.
2. I did not have any collateral, such as a house.

Meanwhile, Wayne found a tenant who could rent the whole unit. That was the end of this discussion, but I at least learned that it is almost impossible to get a loan.

(Continue to August, 2008.)

Japanese version of this entry is here.


March, 2007 (Part 1)

(Continued from The end of January, 2007.)

I emailed Wayne:

I just wrote you a couple of weeks ago that I started working as a store manager of a small coffee shop. I am already laid off as the owner could not afford my position. But I am still crazy enough to plan my own café. If you happen to have a space for me to work 100 hours a week and live off leftover pastries, please let me know.

(Continue to Part 2.)

Japanese version of this entry is here.

End of January, 2007

(Continued from January, 2007.)

Even before I was laid off, I realized for most of independently owned coffee shops it was difficult to hire a full-time manager. I felt that the owner had to work as a manger AND do the physical labor at least 40 hours a week for the first year, then the store may start making some profit.

So there were only a few places hiring a manager. One of them I visited was a large operation with 30-40 employees and opening for 24 hours. The position seemed stable, but I could not speak most of employees’ primary language.

Other places I interviewed for made me feel that I would be laid off just as I was at the beginning of the year. One of stores possessed the same name as the very well-known coffee shop in San Francisco, although there was no support from or royalty payment to the parent store. Store front was large enough for a restaurant, and interior fixtures looked expensive.

One of three owners was home taking care of her baby. The second one, first one’s husband, was in real estate business and owned the building the café was located in. His main duty at the store was to “make decisions” on vendors and vendors, in his words. The third one worked for the city in the office near the café and came to work in the evenings.

The owners were looking for a store manager who can:
- Fix their computer POS.
- Train the employees.
- Do ‘something’ about the menu which was already expanded to increase the sales.

The job seemed interesting and challenging. But I was not sure if owners were flexible enough to really allow changes. I would become their financial burden just like at the previous place, even if I accepted the job

(Continue to March, 2007.)

Japanese version of this entry is here.

E-mail form

I have reported to FC2 (blog provider) that email form is not working. Please use the "Comment" feature to send me a message. I am very sorry for the inconvenience.

January 2007

(Continued from The end of 2006.)

About 2 weeks into the New Year, the owner announced that he could no longer afford my position and laid me off. I was not shocked, since I had anticipated such a bad scenario already. As I was not satisfied with the condition of the place I moved to for this job, I decided to pack up everything and moved back to where I was just 4 months before.

(Continue to End of January, 2007.)

Japanese version of this entry is here.

The end of 2006

(Continued from 2006 Fall Part 3.)

Around November I sent a card to Wayne, the landlord who showed me his property at the beginning of the year.

“I really appreciate that you told me I was too naïve to start my own business. I took your advice and left the full-time job as a scientist to work as a store manager of small coffee shop in another town. I am still hoping to open my show one day. Please keep in touch.”

At the small coffee shop, things were running well after the grand opening. We got some regular customers, and the employee learned daily routines. Holiday season helped people spend extra money, but many people of nearby businesses and city hall took vacations which did not help the sales.

I started wondering how the business would sustain after the holiday season when everybody’s wallet becomes tight. Also wondered, “how much sales did the owner expect before he signed on the lease?” “Why did he decide to hire a full-time manager like me? How did he plan to pay me?” I anticipated that my position may not be there too long and so began thinking about what to do next.

(Continue to January 2007.)

Japanese version of this entry is here.

Hiring friends?

When talking about the progress of Snappy’s café, I am often asked if I already have friends lined up to work with me once the café is open. I actually did not consider hiring friends until such a question was asked. I was planning to put an ad at employment office(s) of nearby schools.

Business with friends sometime gets tricky. I have seen friends going into a business together and both the business and friendship fell apart. I also have an experience of trying to help friend’s business by introducing a potential client just to make the friendship sour when the client lost interest.

Many of us go out for lunch with colleagues/bosses/subordinates and may even get together on a weekend. But that usually happens after you have established a professional ground.

It will be good to hire friends because:
- You already know that person and can trust.
- If the friend is looking for a job, you can help her/him by providing employment.

But...
- It maybe difficult to say or ask certain things to friends.
- What may happen when I also hire someone I previously do not know? Can they get along?
- If I have to let him/her go, could we be still friends?

Maybe it’s not a very good idea to hire friends, if I want to be their friends…

So, to the question “do you already have friends lined up to help you at the store?” I respond, for now, “nah, cuz I wanna keep my friendship. But I may ask them to help events or something.”

No one has offered work for me so far. But some said they would clean the café for free or paint the walls before grand-opening. I am so fortunate to have cheerleading friends like them. They are priceless, and I can’t afford to lose them. Oh, one person has offered his stand-up comedy at an event. I guess we have to plan an open-mic night!

Japanese version of this entry is here.

Fall 2006 (Part 3)

(Continued from Part 2.)

After about 6 weeks of preparation, the coffee shop quietly opened. That is often called a “soft opening” as a test period when employees receive more training at actual setting and we attend glitches not considered during preparation. It was also used to plan how the grand opening would be.

Two weeks of soft opening was followed by a week-long grand opening. We distributed $2-off coupons to the residences and businesses in the neighborhood and also offered the same discount to whoever came through the door without the coupons. Majority of the customers were from the city hall in front of the café. We realized the waiting line provided a social space for the customers, especially for the ones from city hall with several hundred staff members. We often heard the conversation such as “I work at xyz department on the 5th floor, you?” One customer became so busy with talking to another whom she just met though her coworker that she forgot her pastry. The cashier later delivered it to her as he remembered where she worked from the conversation.

I would say the grand opening was very successful, as it worked as a great advertisement and that we could learn the store operation. I later realized I worked over 100 hours during that week. No wonder I was too off to remember employee’s name on 5th day….

(Continue to The end of 2006.)

Japanese version of this entry is here.

Fall 2006 (Part 2)

(Continued from Part 1)

Employee training was mainly on espresso and other beverage preparation and on customer services.

The owner of coffee bean roaster came to train at the store. Employees had various attitudes toward learning espresso-making. Among those who had experiences using similar equipment, some seemed serious about learning new things, while another didn’t seem interested at all. Ones who had never worked in food services looked somewhat nervous. They might have been concerned if they could work as well as others.

After roaster’s visit, each employee practiced individually with the assistant manager for a total of 2-4 hours. Some went to the roaster’s facility to observe how beans are roasted and to learn more espresso-preparation techniques from their staff.

Regarding customer services, the assistant manager and I were in agreement that
“You are responsible for customer’s experience from the time s/he enters the store until s/he exits.” We also agreed that is not something to be learned through lectures but by actually working around customers. At a staff meeting we had some simulations where employees played roles of customers or workers and then discussed different situations afterwards.

Besides employee training, the owner and I decided on vendors, such as a bakery, in order to grand-open the shop.

(Continue to Part 3.)

Japanese version of this entry is here.

Show time!?

During the recent presidential candidate debate, I was at my favorite coffee shop. The place was packed with customers watching TV and students studying for mid-terms.
Debate pix 002

About half-way through the debate, some customers went to the cash register and purchased snacks. I joked with the owner, “you should have sold popcorn.”

Well, I was only half-joking, and another half was pretty serious.

Most of the customers could watch the same program on TV at home. Not really sure what made them to come to the shop instead. You see in the picture that TV set there is not that of modern flat-screen. But some people decided to gather with their friends there instead of their living rooms..

Approach I thought of was,
"If you are going to do that (watching TV in this case) at home, why don't you come to my shop and do that instead?" (and maybe you buy something from us.)

Not sure if Sanppy's will have a TV, but the same approach could be employed for something else.

Japanese version of this entry is here.


Pictures

IMG_1680.jpg  
Store front. Left side of the building will be the parking lot.


IMG_1677.jpg
Looking at the storefront from inside. Wall and ceiling material from previous construction on the floor.

IMG_1676.jpg
Back wall (North side). The blue/white wall will be of some other tenant's.

Japanese version of this entry is here.

Fall 2006

(Continued from Summer 2006)

One for the first things to do as the store manager was to hire part-timers. We posted a little ad on storefront and placed online ads at Craigslist and the employment offices of nearby colleges/Universities. Nowadays you can post an ad at the employment office’s web site so that students can browse the posts and apply online. What a change from how I looked for a job fresh out of college only 10 years before that!

Read more

Summer 2006

(Continued from Around Feb. 2006.)

After Wayne helped me realize how naïve I was, I looked for an opportunity to learn business on other people’s investment. It must be critical to gain experience before I invest my money into my business.

About 6 months after the conversation with Wayne, the owner of the café I was working part-time announced he was opening another shop in another town. He needed a full-time manager for that branch, and I decide to take the position. That meant moving 30 miles (I could drive but didn’t want to fight traffic after a long day), taking 50% pay cut, giving up benefits and increasing my working hours by 20%. But for me the experience would be priceless.

(Continue to Fall 2006.)

Japanese version of this entry is here.

Think and Grow Rich

Think Rich cover

Masa recommended a well-known book “Think and Grow Rich” by Napoleon Hill. I read it once a few years ago when my friend Camp gave it to me. I decided to open it again and found words Camp wrote me inside the cover. “Each time you read this book you will discover something new. Enjoy.”

I have read (for the second time) only the first two chapters so far, but what the author calls his “secret” is a little clearer to me than before. It actually reminds me of the book “The Secret” by Rhonda Byrne. Both books emphasize you can achieve your goal by visualizing yourself already living in it.

Will continue reading this book and see what else I find this time.

Japanese version of this entry is here.

Some clarifications

1. Until I catch up with entries for "background," it maybe easier for you to sort by (subject) before reading.

2. Japanese version of the entry tends to be posted for a day ahead, due to time difference between US and Japan. Also, please take my disclaimer that contents in these two pages are NOT direct translation of each other (in case you are checking, lol.)

3. I have already found myself using “café,” “coffee shop” and “coffee house” interchangeably. They all mean establishments that mainly serve espresso-based beverages such as latte and mocha.

Japanese version of this entry is here.

Contracts

This week we finalized contracts with the landlord and architect.

Japanese version of this entry is here.

When economy is down

I went to fix heels of some old shoes. The repair guy behind the counter looked very busy in the small space. His equipment seemed to have been used for several years. He also seemed to have years of experience in fixing shoes.

Isn't his business one of these that may actually benefit when money is tight?

What can Snappy's do to stay in business (yes, I know, it is yet to be business) in situation like now?

That reminds me... I have heard in the past, somewhere, sometime, in depression that people bought candies (or sugar?) for a small pleasure. Where and when was that?

A lot to think about just from a trip to shoe repair shop.

Japanese version of this entry is here.

Site designer (Part 4)

(Continued from Part 3)

I actually frequented one of the restaurants this second architect mentioned and recognized another one that had just opened right next to it. He sounded familiar to CURRENT health regulations (as opposed to the previous one who may need some update.)

At his office, the architect asked me more questions about around Snappy’s facility, such as parking and neighboring businesses. He also pointed out that a new waste management storage (i.e. dumpster shack) will have to be built outside.

When I mentioned that I previously interviewed an interior designer and design departments of equipment stores, he told me pro’s and con’s of their services as well as of his own service. I was impressed by his attitude to explain from customer’s point of view since other places told me only their pro’s and other’s con’s. I invited him to visit the site so that he can provide me a quote.

The quote came very quickly after he came to take measurements and pictures (and video?) of the site. I had underestimated the fee for electrical and plumbing design done by his contractor. But as I found out he asked for several contractors for quotes, and it was actually the lowest one, I agreed to go with his plan as soon as my contract with the landlord is finalized.

Japanese version of this entry is here.

Small business talk

Last week I had an opportunity to talk to Masa who frequents the same coffee shops I go to.

He said, “I see owners working behind the counter at most of mom & pop coffee shops” and asked:

“Do you think these stores can run without them? I mean, can they be gone for 3 months?”

My answer was NO. Reasons I could think of were:
1. The owners do actual physical work for several hours, and having part-timers do that instead would cost a lot.
2. The owners probably place orders and do other administrative work, and in many cases they are the only ones who do.
3. Most likely, there are other thing only owners know how to.
4. Owners like to be around the shop. After all, that’s their baby. They probably like interacting with customers and making coffee. That’s why they started the shop to begin with.
Probably there are more answers, and Snappy’s will be in the similar situation also.

But later I realized the question was not IF these shops (and mine) can be run without owner’s constant presence but HOW. I know I first have to open the shop to worry about that. But I would like to revisit this question from time to time.

Thank you Masa for throwing me a question!

Japanese version of this entry is here.

Picture: inside wall (west side) as of Oct., 2008. The wood frame in front will be the other wall (east side.)
West wall

Site designer (Part 3)

(Continued from Part 2.)

My Small Business Administration counselor referred me to an architect in next town. He specialized in food service facilities and had a long list of restaurants he had designed. I recognized some restaurants on the list; they all had been around for a while. He said the regulations are tight in my city but that he had enough experience to know how to work with them.

He asked approximate dimension of my space and started drawing rough layouts on scratch paper. “Well, if your customer comes in here, from this door, you have the counter facing this way so that they can travel this way… Some seats here and some more seats here… and you know you have to have 3 feet opening between the counter and this wall. 2 feet for the counter width and 3 feet behind the counter… “ “Or, you can have the counter this direction so that the customers travel this way.. and then seats here and there….” He kept going on and on. I was impressed with his knowledge and willingness to work with me. His initial price estimate was very reasonable. But problem was his speech was hard to understand.

Don’t get me wrong I have nothing against accents. English is not my first language either, and some people have a hard time to understand me. Maybe I will eventually get used to his English and will understand him, I thought. But what if my contractors do not understand him? Or what if we end up with contractors who can communicate with him in the language I do not understand? His low price was still attractive, but the consequence may cost me more.

Well I at lest learned that there exists a profession that is specialized in food service designing but not associated with sales of other stuff. I asked friends in food services for referrals but could not get any lead, but I found a few on the Internet. One of them responded my email right away mentioning a few restaurants recently opened in my town.

(Continue to Part 4.)

Japanese version of this entry is here.

Site designer (Part 2)

(Continued from Part 1.)

I talked to a few equipment stores and found their services were similar. One of them sounded so proud and so busy that they did not have time (and/or need) to let me finish my sentences on the phone. After I politely declined to meet them (at their convenient time, of course), I received a phone call from someone who claimed to be an interior designer. She could not tell me how she got hold of my phone number but was more patient and let me finish what I had to say.

As I listened to her, I learned she had started as an interior designer and expanded her service to food service designing. Most of her past work was on front-house portions of restaurants and banquet halls. She did not sound familiar with regulations in the county and city I was in. I wondered if she was going to design the kitchen herself or contract out.

I asked her for a quote anyways, but she was late for the due date she set herself, claiming she was busy for another client. Maybe I am too picky or demanding, but I would not use another business of mine as an excuse for a (potentially) new client. So I am less important for her because she hasn’t got my business or my business is so small? By the time she delivered the quote and said she had completed the job with the other client and was ready to devote 100% of her time to mine, I was not very interested. Quote was not competitive anyways.

(Continue to Part 3.)

Japanese version of this entry is here.

Site designer (Part 1)

Snappy’s site was an office of about 750 square feet when I visited there for the first time in February of 2006, but then the tenant after that got rid of the walls around it. So we have to build walls as well as plumbing and ventilation systems suitable for food service. I looked for a service to design the space and found there are at least 3 types of professions:
1. The design department of restaurant equipment store.
2. Interior designer who also designs kitchen/storage areas.
3. Architect specializing in food services.

I visited a showroom of restaurant equipment store in the area. They had the most updated equipment meeting current regulations. But of course, they were very expensive. Their business is to sell the equipment, and the design service is just to compliment (at low cost, not free) them. They charge high fee upfront, design the place for the client and sell equipment for ‘discount’ price. Such service is also called ‘turn-key’ and good for those who have money but less time and/or experience to be involved in every single step of restraint opening.

My guess is that the café I used work part-time hired this type of service. Its layout was easy to work and equipment was brand new and updated, but that was the owner’s first food service business.

The sales person showed me a sandwich fridge with double-pane lid. He claimed it would save labor as the employee no longer has to wrap the ingredients on the top shelf and move to the bottom. But the high price did not seem to compensate the labor saved. He also showed a new hand-washing sink with longer handles so that they can be turned on with elbows. Is it a new regulation? Can we just switch the handles of used hand-washing sink? I felt I would not be able to afford their service (and equipment).

(Continue to Part 2.)

Japanese version of this entry is here.

Around Feb. 2006

(Continued from 2005.)

One of the locations I have been interested in for my business became vacant. The space was much larger than I was expecting (3000 sq. ft.), but the landlord offered me to show another property of his in next block. An auto shop was closing its business, and its two buildings (main shop and warehouse/office) were to be leased. Office was divided into two rooms, and one of them seemed well-suited for my idea. It was about 750 sq. ft., facing to the main street and next to the parking lot.

I talked to the landlord how much I wanted to open a coffee shop and that I was working at another coffee shop to gain experience.. He looked at me and said, “Well, Sky, I want my tenants to be successful. I understand what you wanna do, BUT YOU ARE TOO NAÏVE.”

A punch on my face! by someone I just met! I was too shocked to grasp my own feeling; upset? sad? hopeless? I just thanked for his time and left.

On the way home, I began calming down and thought:
“He is right that I am naïve. All I know is how to make drinks, but I don’t know enough about running business. I can’t lean that by just making coffee for a few hours in the morning, can I?”
“.. and if he doesn’t care about me, he wouldn’t bother to tell me something like that. I’d better take his advice. I’m glad he told me that.”

So I started looking for ways to lean running business.

(Continue to Summer 2006.)

Japanese version of this entry is divided into two parts: Part 1 and Part 2.
Profile

Author:Sky978
Preparing to open a coffee shop "Snappy's Cafe" in San Francisco Bay Area.

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